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anyone know if 290 usually updates to 846 this fast? mine's been on 290 for weeks
Congrats on finally getting that 846! π That EIC reduction mess sounds like a nightmare - had something similar happen to me last year where they reduced my credit and it took forever to sort out. The fact that you got interest added too is nice, even if it's not much. 10 months is way too long but at least you're finally getting your money! Hope it hits your account on time π€
Have you taken these steps to verify everything is in order? 1. Check your tax transcript on IRS.gov to confirm the refund amount 2. Verify your bank account details are correct in your tax return 3. Look for code 846 on your transcript which confirms the refund has been scheduled Did you receive any letters from the IRS after you filed? I'm trying to determine if your amendment was processed as part of your original return or as a separate transaction.
Congratulations on getting your DD date! π Based on what you're describing, it sounds like you made your amendments before final submission rather than filing a separate 1040X form afterward. That's why you're seeing such a quick turnaround - the IRS processed everything together as one complete return. A few things to keep in mind for March 13th: - Your bank might post the deposit anywhere from midnight on the 12th to end of business on the 13th - Some banks even release federal tax refunds a day early - If you don't see it by March 14th, that's when you'd want to contact the IRS The fact that WMR gave you a specific DD date is really encouraging - they typically don't do that unless your return has cleared all the major processing hurdles. Your amendments were likely minor enough that they didn't trigger any additional review processes. You should be all set! π°
This is really helpful info! I'm new to filing taxes and wasn't sure about the difference between making changes before vs after submission. So if I understand correctly, as long as you catch amendments before hitting that final "submit" button, the IRS treats it like a normal return? That makes so much sense why @Natalia Stone got her DD date so quickly. Thanks for breaking this down in such an easy way to understand!
Anyone else notice that property tax assessments after inheritance can get really messed up? After inheriting my grandmother's house, the county somehow flagged it and reassessed the value WAY higher than even the market value. Had to file an appeal with the county assessor's office and provide the professional appraisal from when she died. Just a heads up to check your property tax statements carefully after inheriting - could save you thousands!
This is such a complex situation! I went through something similar with my aunt's property last year. One thing I learned the hard way is that you'll also want to consider the timing of your sale carefully. If you're planning to sell within the next few months, make sure you have all your documentation ready - the estate appraisal, any rental income records, receipts for improvements or repairs, and depreciation calculations. Also, don't forget about state taxes! Oregon doesn't have a capital gains exclusion like some states do, so you'll owe Oregon state tax on any gains in addition to federal. The good news is that Oregon generally follows federal rules for the stepped-up basis. One more tip - if you haven't already, consider getting a current appraisal before listing. Sometimes the estate appraisal from a year ago might not reflect current market conditions accurately, and you want to make sure you're pricing it right. Plus, if property values have actually decreased in your area since the inheritance, that could affect your tax calculation too. Managing out-of-state rental property is definitely a hassle - I totally get wanting to sell and simplify things!
This is really comprehensive advice, thanks! I hadn't even thought about the potential for property values to have decreased since the inheritance - that's a good point about getting a current appraisal. Quick question about Oregon state taxes - do you know if they have any special rules for inherited property, or do they just follow the federal stepped-up basis completely? I want to make sure I'm not missing anything state-specific that could affect my planning. Also, you mentioned timing the sale carefully - is there any advantage to waiting until I've owned it for a full year, or does that not matter for inherited property since I got the stepped-up basis anyway?
Has anyone successfully used Form 8802/6166 to get a FULL refund of withheld Japanese taxes rather than just reducing future withholding? My Japanese client has been withholding at 10.21% for the past 6 months and I just learned about this form. Can I get back what they've already withheld?
Thanks so much for this information! I had no idea there was a separate process for getting refunds from the Japanese tax authority. Do you happen to know if there's a time limit for requesting these refunds? I've been dealing with this withholding for almost two years now.
Yes, there is a time limit! For Japanese tax refunds, you generally have 5 years from the end of the tax year when the withholding occurred to file for a refund. So if withholding happened in 2023, you'd have until the end of 2028 to apply. However, I'd recommend acting sooner rather than later because the Japanese National Tax Agency sometimes requires additional documentation that can take time to gather. Also, exchange rates can affect the refund amount you receive, so timing can impact your actual dollar recovery. Make sure to keep detailed records of all payments and withholding amounts - you'll need these for the Japanese refund application along with your Form 6166 from the IRS.
Just wanted to add a practical tip for anyone going through this process - make sure to coordinate the timing of your Form 8802 application with your Japanese client's payment schedule. I made the mistake of getting my Form 6166 right after my client had already processed their quarterly withholding calculations. Even though I provided the certification immediately, they couldn't adjust the withholding rate until their next quarterly period, which meant I still had to deal with over-withholding for another 3 months. Now I plan ahead and submit my Form 8802 application in November/December so I have my Form 6166 ready for the new tax year. This way my Japanese client can implement the reduced withholding rate (usually 0-5% instead of 10.21%) from January 1st. Also, don't forget to file Form 1116 (Foreign Tax Credit) on your US return for any taxes that were withheld, even at the reduced rate. You can claim a credit for the actual amount withheld, which helps avoid double taxation.
This is really helpful timing advice! I wish I had known about coordinating with quarterly periods earlier. Quick question - when you mention filing Form 1116 for the Foreign Tax Credit, does this apply even if I successfully get the withholding reduced to 0% through the treaty? Or is Form 1116 only needed when there's still some withholding happening at the reduced rate? Also, for anyone else reading this, does the timing coordination work the same way with other countries, or is the quarterly adjustment period specific to how Japanese companies handle their tax withholding?
Dominic Green
After reading all this, I'm genuinely curious - has anyone successfully used the 65-day rule to reduce trust taxes? My accountant mentioned it but wasn't sure if it was worth the effort for our situation.
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Jordan Walker
β’I've used it successfully for several trust clients. The key is timing and documentation. You need to make the distribution within 65 days after the tax year ends (so by March 6th for most years) AND explicitly elect to treat it as a prior year distribution on the tax return by checking the right box and reporting it correctly. The biggest benefit comes when the trust has high income that would be taxed at the highest trust tax rate (which kicks in very quickly) and the beneficiaries are in lower tax brackets. The potential savings can be substantial since trusts hit the top 37% federal tax bracket at just $13,450 of income (2023 rate) while individuals don't hit that rate until over $500,000.
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Noah Torres
This is incredibly helpful information! I'm dealing with a similar trust situation for my nephew and had no idea about the 65-day rule or the DNI calculations. One question - when you pay the taxes from the trust accounts, do you need any special documentation for the investment companies? I'm worried about how to properly record the tax payments as trust expenses versus personal expenses when I'm writing checks from the trust account. Also, has anyone dealt with estimated quarterly payments for trusts? I'm wondering if I should be making those going forward since we'll likely have similar investment income each year.
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